Legal Battle Engulfs Neon Machine, Shrapnel's Game Development Continues Amidst Turmoil

Founders of Neon Machine, the studio behind the blockchain game Shrapnel, have filed a lawsuit against investor Cort Javarone, alleging a coup. Despite the legal turmoil, the development of the first-person shooter blockchain game continues.

Alleged Coup at Neon Machine

Six founders, including CTO Don Norbury and COO Aaron Nonis, filed a lawsuit against investor Cort Javarone, claiming he appointed himself as Neon CEO and removed another founder, Mark Long, from the board.

CEO Long's Defiant Response

Mark Long, reportedly ousted, insists he remains the CEO, tweeting, "I’m still CEO, and they just got served. #Molonlabe," expressing his determination to retain his position.

Investor's Impact on Shareholders

Javarone's actions allegedly delayed the issuance of preferred shares to Neon investors at Griffin Gaming Partners and Polychain Capital, creating additional tensions.

Contractual Breach and Financial Impact

The lawsuit accuses Javarone of attempting to seize control of the studio, breaching contractual promises to new investors, causing severe harm, and jeopardizing Neon's financial stability.

Concerns Over Studio's Finances

Founders express concerns that Javarone might attempt to use Neon's funds to resolve his $4.5 million debts, citing his Chapter 5 bankruptcy filing for his businesses.

Implications for Shrapnel's Future

The legal turmoil raises questions about the potential impact on Shrapnel's development, despite its recent success in raising $20 million in a Series A round.

Studio's Response and Focus on Development

In response to the lawsuit, Shrapnel's official statement on Twitter emphasizes that they remain in control of development, funding, and operations. Studio Head Don Norbury reassures the community, stating, "Shrapnel will always aggressively protect our team, our project, and our community."

The internal dispute at Neon Machine adds uncertainty to the future of Shrapnel, a highly-anticipated blockchain game. While the legal battle unfolds, the studio maintains its commitment to delivering the AAA first-person extraction shooter as planned.